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Acer and Gateway to Complete Merger Within the Next Few Days

Polaris573

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Acer has acquired over 90 percent of outstanding shares of Gateway, paving the way for completion of the deal, announced in August, to buy U.S. PC vendor Gateway for around 710 million USD through a tender offer for the company's shares. Acer announced that its investment subsidiary, set up to buy Gateway stock, had finished the tender offer and would soon finalize the deal. The two companies will formally merge within the next few days, and the deal will be closed by Oct. 16. Gateway's stock will cease to trade on the New York Stock Exchange by that date. Analysts predict, the Acer-Gateway deal and the pending arrangement for Gateway to buy European PC vendor Packard Bell, will put the Taiwanese company in a position to challenge Hewlett-Packard Co. and Dell Inc. for U.S. market share. Blocking rival Lenovo Group Ltd. from gaining ground in Europe through its planned purchase of Packard Bell. Gateway will continue to operate under its own name as a subsidiary of Acer, and the company expects to expand its product offerings. Acer said it was gratified by the enthusiasm in which Gateway employees and clients have reacted to the acquisition. In a separate statement, Acer said it borrowed 607.2 million USD from Citigroup Inc. for use in the Gateway purchase.

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Go Acer, Gateway has been dieing out ever since they tried to do retail selling of PCs/laptops. But these megamergers, how many jobs will be lost in this?
 

WarEagleAU

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I thought their retail selling of PCs made them a hit with the consumer..
 
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I thought their retail selling of PCs made them a hit with the consumer..

nope, a few years back they had to do some major downsizing because they over expanded in retail. While they did this the bulk of their sales were still online/by catalog.
 
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